Public Bank Eyes Higher Dividends from Merger Synergies

Public Bank (PBBANK) is positioned to increase its dividend payouts beyond the usual biannual schedule, driven by potential product cross-selling opportunities following its acquisition of LPI Capital (LPI), as reported by TheEdge according to a local research house.

Additionally, PBBANK plans to gradually reduce its loan loss coverage (LLC), targeting credit costs under 10 basis points long-term, supported by disciplined asset quality management.

Investors seeking leveraged exposure on PBBANK may consider PBBANK-C1L, which recorded a traded volume of close to 30 million yesterday.

#DailyHighlights

Maybank IBG Traders’ Almanac
(10 Jan 2025) - Market struggles to find a moment of rebound

Technical Trading Ideas💡for today:
1️⃣ ECO WORLD DEVELOPMENT – 8206 (S)
2️⃣ SUCCESS TRASNFORMER CORP – 7207 (S)
3️⃣ SOLAR DISTRICT COOLING GROUP – 0321 (S)
4️⃣ CPO FUTURES (CP: MYR 4,286)
5️⃣ KLCI INDEX FUTURES (CP: 1,599.00)

Note: S - Shariah Compliant

For the full report, stock ideas, and market flows, access Market Insight on Maybank Trade on Apple Store and Google Play.

#MaybankIBGResearch
#MaybankIBGTA

UOBKH Retail Market Monitor
10 January 2025

FBMKLCI: 1,601.76 (-13.07)
Support: 1,600, 1,589
Resistance: 1,630, 1,648

Bursa Top Gainers:
MAXIS (+1.4%), CDB (+1.4%), PPB (+0.49%)

Bursa Top Losers:
YTL (-8.2%), YTLPOWR (-6.9%), GAMUDA (-3.9%)

Bursa Trade Statistics
Local Institutions (42.60%): RM121.76m
Local Retail (20.22%): RM12.69m
Foreign (37.18%): -RM134.45m

Global Equity Indexes
MSCI Asia : 179.44 (-1.29, -0.71%)
NASDAQ : 19,478.88 (-10.80, -0.06%)
S&P500 : 5,918.25 (+9.22, +0.16%)
DJIA : 42,635.20 (+106.84, +0.25%)

USD/MYR : 4.5030 (-0.011)
SGD/MYR : 3.2885 (-0.7025)

Crude Oil : 74.23 (+0.31)
Gold : 2,693.40 (+2.60)

US market closed for public holidays.
Stocks To Watch:

1) ANCOMNY (KLSE: 4758)
Technical BUY with +13.7% potential return
* Last: RM1.02 TP: RM1.11, RM1.16 SL: RM0.97
* Timeframe: 2 weeks to 2 months
* Shariah: YES

2) MHC (KLSE: 5026)
Technical BUY on breakout (1.03) with +19.4% potential return
* Last: RM1.02 TP: RM1.17, RM1.23 SL: RM0.975
* Timeframe: 2 weeks to 2 months
* Shariah: YES

3) VTC (KLSE: 0319)
Technical BUY with +32.4% potential return
* Last: RM0.525 TP: RM0.63, RM0.695 SL: RM0.445
* Timeframe: 2 weeks to 2 months
* Shariah: YES

Join UOB Kay Hian Malaysia's Official Telegram Channel
https://t.me/UOBKayHianMalaysia

Disclaimer:
This material is a service for investors and does not represent a buy or sell call. Usage of this information is at your own risk. You are advised to conduct your own independent evaluation, due diligence and risk assessment before investing. We accept no liability whatsoever for any direct or consequential loss arising from any use of this information.

For the full research report, please log in to www.utrade.com.my

*Trading Stocks today:*

For *Trendspotter*, please click on this link: < https://tinyurl.com/yttk45d9 > to view the report.

Or please logon to your account on http://www.cgsi.com.my/ and click on <Research> Tab.

*Malaysia*:
*Salcon (8567)* (RM0.265): Technical Sell
Targets: RM0.25, RM0.225
Stop: RM0.295

*Seng Fong Holdings (5308)* (RM0.96): Technical Sell
Targets: RM0.91, RM0.835
Stop: RM1.05


*Fundamental Report(s):*

*Gamuda* - Orderbook targets looking conservative (Maintain Add with a higher TP of RM6.45) https://tinyurl.com/2rtbwwuz

*Bursa Malaysia* - Robust IPO trend in the stock market (Maintain Add with a higher TP of RM11.30) https://tinyurl.com/nxt8p6za


Join CGS International Securities Malaysia's Official Telegram Channel https://t.me/cgsi_my

*10th Jan 2025*

Disclaimers: This distribution is by CGS International Securities Malaysia Sdn. Bhd. (“CGS MY”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CGS MY, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.

*Corporate news*

*Dialog Group Bhd* announced on Thursday 9 Jan that it has secured the final investment decision (FID) for the field development and abandonment plan under the Baram Junior Cluster Small Field Asset Production Sharing Contract (PSC), amounting to US$235m (RM1.0bn). (The Edge Malaysia)

Yinson Production, the offshore business arm of *Yinson Holdings Bhd*, said on Thursday 9 Jan that its FPSO vessel, FPSO Atlanta, has achieved first oil in Brazil. (The Edge Malaysia)

*Public Bank Bhd*'s conditional mandatory takeover offer for the remaining shares of insurer *LPI Capital Bhd* that it does not own has lapsed, as it did not secure sufficient acceptances by the close of the offer on Thursday 9 Jan. (The Edge Malaysia)

Oil-and-gas services firm *T7 Global Bhd* said on Thursday 9 Jan it has been awarded a six-month contract with undisclosed value. (The Edge Malaysia)

*Parkson Holdings Bhd* announced that its unit, Liupanshui Parkson Retail Co Ltd, has signed a 10-year tenancy agreement for its department store operations in the city of Liupanshui, Guizhou province, China. (The Edge Malaysia)

Major shareholders of *NPC Resources Bhd* are in talks for a proposal that could lead to the Sabah-based palm oil producer being taken private at RM2.82 per share. (The Edge Malaysia)

SWA Shipping Sdn Bhd is facing a deadline of 25 February as *Pos Logistics Bhd* is considering terminating the RM123.2m deal for the acquisition of PNSL Bhd. (The Edge Malaysia)

Technology company *Green Packet Bhd* said its wholly owned Packet Interactive Sdn Bhd (PISB) has obtained a digital lending licence from the Ministry of Housing and Local Government. (The Edge Malaysia)

*MPHB Capital Bhd*, which is involved in the credit services and property businesses, said that its shares will be suspended, effective from 22 Jan, to facilitate the company’s selective capital reduction before it is taken private. (The Edge Malaysia)

Target 1 Sdn Bhd, *South Malaysia Industries Bhd*’s largest shareholder with a 30.7% stake, announced on Thursday that the company’s EGM proceeded as scheduled on Thursday, with the resolutions to appoint six new directors, including former Perak police chief Datuk Pahlawan Mior Faridalathrash Wahid, being passed. (The Edge Malaysia)

*The unit price index of steel recorded a decrease of between 0.1% and 4.6% across most parts of Malaysia in Dec 2024* compared with the previous month, said the Department of Statistics Malaysia (DOSM).

*The ringgit is heading in the right direction, reflecting the country's strong economic fundamentals and growth prospects for the next couple of years, according to BNM*. Governor Datuk Seri Abdul Rasheed Ghaffour said he believes the ringgit will continue to remain supported by the further narrowing of interest rate differentials with the United States and other countries, as well as the growing investor optimism. (Bernama)


*10th Jan 2025*

Disclaimers: This distribution is by CGS International Securities Malaysia Sdn. Bhd. (“CGS MY”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CGS MY, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.

Technology (OVERWEIGHT)
-MPI 3867 (Syariah Compliant) TP RM38.50
-CTOS 5301 (Syariah Compliant) TP RM1.58
-CORAZA 0240 (Syariah Compliant) TP RM0.62
-DSONIC 5216 (Syariah Compliant) TP RM0.68
Limited Impact On Local Tech Space; OVERWEIGHT
https://tinyurl.com/yc4my9dv


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M+ Market Wrap - 10Jan25

FBM KLCI: 1,602.41 pts (+1.60pts, +0.10%)
Despite the sluggish regional market performance, the FBMKLCI (+0.10%) bucked the trend and closed slightly higher at 1,602.41 pts, led by key heavyweights including CIMB (+7.0 sen) and YTLPOWR (+5.0 sen). Nevertheless, the market breadth was still negative, with 530 losers against 443 winners. In the broader market, the Healthcare (+1.48%) sector emerged as the top gainer, with bargain-hunting activities occurred across glove counters like HARTA (+8.0 sen) and TOPGLOV (+3.0 sen) after their recent pullback. Meanwhile, the Property (-0.68%) sector ended the day as the worst-performing sector.

Top 3 Active stocks:
VELOCITY (7165): RM0.085 (+1.5 sen)
NATGATE (0270): RM2.450 (-17.0 sen)
SET (0337): RM0.385 (-3.5 sen)

Volume: 2.52 bn (100-bar avg vol: 3.03 bn)
Value: RM2.42 bn (100-bar avg val: RM2.85 bn)
Market Breadth: ⬆️443 ⬇️530
Crude palm oil: RM4,383 (+RM87)
Dow Futures: 42,841 pts (+19 pts)

**Source: Bloomberg, M+**

2025 outlook: The key sectors to watch
https://theedgemalaysia.com/node/740299

M+ Morning Market Buzz - 13Jan25

Dow Jones: 41,938.45 pts (-696.75pts, -1.63%)
⬆️ Resistance: 44000
⬇️ Support: 41100

FBM KLCI: 1,602.41 pts (+1.60pts, +0.10%)
⬆️ Resistance: 1670
⬇️ Support: 1570

HSI Index: 19,064.29 pts (-176.60pts, -0.92%)
⬆️ Resistance: 20300
⬇️ Support: 18700

Crude Palm Oil: RM4,391 (+RM95, +2.21%)
⬆️ Resistance: 4540
⬇️ Support: 4150

Brent Oil: $79.76 (+$2.84, +3.69%)
⬆️ Resistance: 82.40
⬇️ Support: 74.20

Gold: $2,689.76 (+$22.51, +0.84%)
⬆️ Resistance: 2760
⬇️ Support: 2570

Source: Bloomberg, M+

M+ Market Update – 13Jan25
Tech Stocks May Experience Higher Volatility

The local bourse ended the week on a marginally positive note, lifted by gains in the Banking and Utilities sectors. In the US, December job data showed a recovery following the devastating hurricane season in November, exceeding analysts' forecasts. However, Wall Street closed on a negative note as markets anticipated that the Fed could further slow the easing cycle. In the commodities market, Brent crude oil approached the USD80 level amid declining US crude inventories. Gold prices traded above USD2,680 an ounce, while CPO prices rebounded, but remained below the RM 4,400 level.

Sector Focus Mirroring the softer tone of the US market performance, KLCI is set to open lower. Traders may focus on the O&G sector amid the surge in Brent crude oil prices and export-oriented stocks, that could benefit from the strengthening of the Dollar, which is currently hovering around the two-year high. However, the upside of the Technology stock may be limited following the announcement of further US restrictions on AI chip exports to Malaysia. Nevertheless, we believe domestic-themed plays may take the lead in the near term ahead of Trump’s inauguration January 20. Key themes to watch include JSSEZ initiative, Penang’s ongoing LRT project and potential emergence of Sarawak as an energy hub.

Stocks to watch:

Technology: *ADB*, CLOUDPT, *EG*, *ITMAX*
Utility: KJTS, *PEKAT*, SLVEST, UUE
Consumer: *GCB*
Building Material: UNIQUE

Source: M+

Consumer Sector Poised for Growth in 2025

Maybank Investment Bank (Maybank IB) Research forecasts a 15% YoY net profit growth for Malaysian consumer stocks, including Nestle (NESTLE), Farm Fresh (FFB), and MR D.I.Y. (MRDIY), citing strong macroeconomic factors and supportive government initiatives.

Key drivers include the Employees Provident Fund Account 3 withdrawals, a 7-15% civil service salary increase (effective Dec’24), and a minimum wage hike from RM1,500 to RM1,700 per month (effective Feb’25).

Investors bullish on the forecast may consider Call Warrants like MRDIY-C36, which tracks the share price of MRDIY closely with a sensitivity of 1.7 ticks.

#DailyHighlights

*Corporate news*
 
*Sime Darby Property Bhd* said on Friday 10 Jan it has fully acquired two modern double-storey logistics warehouses in Bandar Bukit Raja, Selangor for RM232m. (The Edge Malaysia)
 
*Tenaga Nasional Bhd* or TNB said its indirectly wholly owned unit TNB Western Energy Bhd has been slapped with an income tax bill amounting to RM291.6m for the year of assessment 2018 from the Inland Revenue Board (IRB). (The Edge Malaysia)
 
Gamuda Land and *Public Bank Bhd* have introduced Malaysia’s first flexible 120% home financing package, the PB SmartLiving scheme, offering new levels of accessibility and affordability for homebuyers. (The Edge Malaysia)
 
*Metronic Global Bhd*, which provides system integration services and integrated management systems, announced that its subsidiary, MAT JV Sdn Bhd, has been awarded a RM31m contract by Gamuda M&E Sdn Bhd to supply instrumentation systems for the Sungai Rasau Water Supply Scheme project. (The Edge Malaysia)
 
*Uzma Bhd*, through its subsidiary Setegap Ventures Petroleum Sdn Bhd (SVP), has secured a one-year contract extension worth RM100m from Petronas Carigali Sdn Bhd. (The Edge Malaysia)
 
OSK Property Holdings Bhd, the property arm of *OSK Holdings Bhd*, is expanding its land bank with the acquisition of four parcels of freehold land measuring 26.3 hectares in Sungai Petani, Kedah, for RM14.2m. (The Edge Malaysia)
 
*LBS Bina Group Bhd* has launched Centrum Iris, the second precinct of Cameron Centrum and the largest mixed development of commercial offerings located in Cameron Highlands, Pahang. It has a projected gross development value of RM472m. (The Edge Malaysia)
 
*AME Real Estate Investment Trust*, a 49.6%-owned unit of *AME Elite Consortium Bhd*, is planning to establish a sukuk wakalah programme with a value of up to RM1bn. (The Edge Malaysia)
 
Malaysia’s national oil and gas company *Petroliam Nasional Bhd (Petronas)* has reached the final investment decision for the development of the Hidayah field offshore East Java, Indonesia. A final investment decision in the oil-and-gas industry typically takes years to make and is a sign that a proposed project will proceed following extensive studies and planning. The project owner then approves the budget, allowing contractors to acquire materials as well as equipment to begin work. (The Edge Malaysia)
 
*Berjaya Group* is seeking a new partner as it bids for a proposed multibillion-dollar high-speed rail (HSR) line between Kuala Lumpur and Singapore, after *Malaysian Resources Corp Bhd* withdrew from the consortium, Berjaya Corporation Bhd founder Tan Sri Vincent Tan Chee YiounChiun said. (The Edge Malaysia)
 
*Key Alliance Group Bhd* has proposed to consolidate its shares on a 30-to-one basis. The proposed share consolidation is part of its capital management plan to improve its capital structure and aims to reduce the volatility of the trading price for its shares, the company said in its bourse filing. (The Edge Malaysia)
 
 
 
*13th Jan 2025*
 
Disclaimers: This distribution is by CGS International Securities Malaysia Sdn. Bhd. (“CGS MY”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CGS MY, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.